Financial Experts and professionals may answer these topics for knowledge sharing.
The following topics are discussed at various stages of ACCFIN (Accounts and finance interview).
1. What is the formula to calculate Return on Investment? What kind of decisions can be made by comparing ROI? What are the limitations of this ROI?
2. In financial management how Net Present Value is calculated? How NPV differs from Pay Back Period method? What kind of decisions can be taken based on NPV and PBPM?
3. What is Variable Cost? What are all components of Variable Cost? In what way this classification is useful? If company produces different products how this classification is done?
4. What is P/V ratio in Marginal Costing? How this analysis is useful?
5. What kinds of expenses are considered as Fixed Costs? Can we include fixed costs into "Cost of Goods Sold"? What kind of analysis can be performed after determining quantum of fixed costs?
6. What are all various Inventory management techniques? When inventory is not managed properly how it effects the organization?
7. What is Process Costing? What kinds of organizations use this method of costing? What are Normal Loss and Abnormal Loss? How they are treated in deciding the cost of manufacturing?
8. Explain about Holding company, subsidiary, production unit, division, branch, franchisee, and affiliate, Flagship Company, Blue Chip Company and Joint Venture Company.
9. Mention different types of assessees under Income Tax? How corporate tax differs from Individual Income Tax? Why Income Tax payable is considered as part of profit & Loss appropriation? How TDS differs from corporate Income Tax? What is the maximum allowable income limit for Individuals and companies for this year? Why this is changed every year? What is dividend distribution tax?
10. When one company is considered as Subsidiary Company of other company as per company law? If one company is subsidiary of other company what additional rules are applicable in accounting and in company management? What is the difference between subsidiary and merged company
11. What is the difference between Merger Vs Acquisition? What is the procedure for completing merger? What is the role of SEBI in Merger deals?
12. What is basic difference between Equity Share, Debenture, Preference share, Bond, Stock, Security, and Note & Deposit? In what circumstances companies issue these? What is the process of issuing these?
13. What is difference between Stock Options and Share Warrants? How listed options differ from Employee Stock Options (ESOPs)? Who will issue listed options and why? Who will issues Warrants and why?
14. What are all various Derivative Financial Instruments? How commodities derivatives differ from securities based derivatives? Where commodities derivatives are traded? How derivative is created? Who controls derivative trading markets and with what rules?
15. What is Mutual Fund Business? Why Mutual Fund Capital is called as Units? Is these MFs are listed on stock exchange? What are all various types of MFs? Are these mutual funds are allowed to acquire companies? What kinds of investors prefer MFs? How to enter and exit from MF?
16. What kinds of instruments are called as Debentures? What is the nature of Convertible debenture? What is the procedure of issuing debenture? Can debenture holders elect directors of the company?
17. What is ADR? What are all different parties in ADR? What additional legal formalities ADR Company need to follow?
18. What is Merchant Banking? Who regulates merchant bankers in India
19. What is Letter of Credit? What are all various parties involved in LC? What is procedure of payment in LC? How LC differs from Bank Guarantee?
20. How to calculate P/E Ratio? What is the importance of PER? How to compare PER of two companies? Can we consider PER and take investment decision?
21. What is the formula for Interest Coverage Ratio? What kinds of stakeholders are interested on this ratio? How much is considered as ideal? How this ratio helps finance manager in his decisions?
22. What is formula for Earnings per Share? Why investors give lot of importance to this number? Which accounting standard is applicable to this? What are the important guidelines mentioned in that standard? What kind of issues that standard is trying to resolve?
23. What is purpose of calculating Liquidity Ratios? What are various types of liquidity ratios and how to calculate? What kind of interpretations we can make from Liquidity ratios?
24. What is the difference between Face Value, Book Value, Intrinsic Value, and Realizable Value & Market Value of share?
25. How Market Capitalization value of company is calculated? What kind of interpretation we can make by looking into this? What is Economic Value added and Market Value Added? How to calculate and what interpretations we can make from them?
26. What is the basic difference between Current Assets and Quick Assets? Why this classification is done? What is ideal quick ratio? What is obsolete Inventory means?
27. How to calculate Cash Operating Profit? In what kind of ratios this number is used? What kind of interpretations we can make from COP?
28. What is the difference between Internal Auditor, Statutory Auditor, External Auditor, Special Auditor, Management Auditor, Chartered Accountant, Independent Accountant, and Certified Public Accountant & Operational Auditor?
29. When one company is considered as Subsidiary Company of other company as per company law? If one company is subsidiary of other company what additional rules are applicable in accounting and in company management? What is the difference between subsidiary and merged company
30. What is the meaning and purpose of "Ltd" in the name of the company? How it differs from inc. and corp.? Can partnership firms keep "Ltd" at the end of their name? What is new LLP law released recently in India
31. When and why companies go for Bonus Shares issue? What is procedure to issue Bonus shares? How issue of Bonus shares effect the Market price of those shares? What are the guidelines of SEBI for issue of Bonus Shares?
32. What is Book Building Book Building
33. What is meant by Share Premium? When company can issue shares at premium? How SEBI controls the quantum of Premium? Why potential shareholders buy shares for premium? What is the accounting procedure for share premium? Can we consider share premium as other Income?
34. What is difference between stock dividend and cash dividend? Who will declare dividend of a company? On what basis company decides % of dividend? What is the accounting treatment for dividend recording? How interest differs from dividend?
35. What is Working Capital Management? What kind of tools and techniques are used in working capital management? What is technical insolvency? What are various solvency ratios used to analyze working capital? What kinds of bank loans are given for working capital and with what conditions?
36. What is Stock Split? When companies go for stock split? What kind of effects SS will make on market? What is the procedure company need to follow for implementing SS?
37. What are all various components of Annual Report? Why AR is available for general public? Why SEBI and stock exchanges concentrate of disclosures made in Annual report? Why private companies don’t publish annual report to general public?
38. Why Depreciation is provided? What are various methods of depreciations are there? Which accounting standard speak about depreciation and what are the main provisions of that? In which schedule of companies act depreciation is suggested? What are depreciation related suggestions of Income Tax?
39. What is the basic difference between depreciation, depletion & amortization? Why these different names are used? Why these all are provided as provision? Why these are considered as non-Cash expenditure?
40. What is deferred revenue expenditure? Because of what accounting concept we make accounting treatment for deferred revenue? Why accounting divides all incomes and expenditures into revenue and capital? Is differed revenue considered as fictitious asset or Intangible Asset and why?
41. What are the components of Manufacturing account, Trading account, Profit & Loss account, income & expenditure account and in what circumstances we prepare these statements?
42. What is going concern concept? Where this concept is used and if we don’t have this concept how presentation of accounts will be effected? Explain with examples?
43. What is importance of accrual concept? Give 5 examples where this concept is used? How mercantile system of accounting related to this concept? Where can we follow Cash basis of accounting? What is single entry book keeping? Why can we use single entry for business units?
44. What is vertical balance sheet and what are the components of that? Why balance sheet is prepared in that format? Which schedule of companies act suggests that?
45. What are all various components of Fixed Assets? In what circumstances depreciation is provided on Lands? Can we provide appreciation on fixed assets if market value of those is increased? Because of what accounting convention we cannot provide appreciation?
46. What is the basic difference between accounting concept, convention, principle, policy & standard? Why we require all of these in accounting?
47. What is Minority Interest? In what kind of accounting statements this number is disclosed? How it is calculated? When it is calculated? Which accounting standard is suggesting this calculation? How this number helps users of financial statements?
48. What are all components of Cash Flow Statement? How it differs from Cash Budget? Which Accounting Standard suggests preparation of CFS? What we can understand by looking at CFS? Why CFS is introduced in addition to P&L account and Balance sheet?
49. What is importance of Accounting Concepts in Accounting? How they differ from Conventions and Standards? How many concepts are available? If concepts are not presents what kind of problems users of accounting books will face?
50. When some portion of expenses are considered as liabilities? What accounting concept is used to estimate all outstanding expenses? What will happen to outstanding expenses in following year? In balance sheet where these outstanding expenses are disclosed? Why expenses are written off within one year period?
51. What is Convention of Conservatism? What is the purpose of this convention? If this is not in place what kind of problems investors might face? In what circumstances this convention is not followed?
52. What are all different types of Provisions in Accounting? How Reserve is different from Provision? Why both provision and reserve are disclosed in Liabilities side? If anticipated loss not occurs what will happen to created provision? How Provision for Bad Debts differs from Bad Debts written off?
53. What Assets are considered as Fictitious Assets? How they differ from Intangible Assets? In terms of disclosures, treatment and amortization how these two types differs? Which accounting standard is talking about these? When P&L debit balance is disclosed in balance sheet? When companies go for internal reconstruction or Capital restructuring?
54. Explain different components of Inventory? What is the recording procedure for closing stock accounting? Why stock movements are not recorded in accounting books? Why inventory valuation is done as a year end activity? Why inventory is disclosed at Market value or Cost whichever is less? If market value of inventory is less than “cost” how does you record that difference? Which accounting standard speaks about inventory? How many inventory valuation methods are available? Which is best?
55. What is Convention of Materiality? In what way this convention helps the accounting? By following this, what accounting transactions are passed? What are all advantages of this Convention?
56. How company's Goodwill is calculated? Where GW is disclosed in accounting statements? What is acquired Good Will? Why GW is amortized? What accounting standard is applicable to GW? What all are main guidelines under AS for GW?
57. What are all different types of Leases? What is the difference between operating lease, Capital Lease and Finance lease? Who claims depreciation on Lease assets? What amount is disclosed in BS for lease hold properties? How hire-purchase differs from Leasing? In what circumstances companies go for leased assets instead of buy?
58. What kinds of expenses are considered as non-operating? How Operating expenses effect the analysis of financial performance? Why expenses are categorized in to these two headings in P&L account?
59. Why writing off intangible assets is called as amortization? On what basis period of amortization is decided? What accounting entries we need to pass to record amortization?
60. Why companies prepare Bank Reconciliation Statement? Why differences between Bank and accounting books happen? How frequently BRS is prepared? In what circumstances accountants need to pass rectification entries based on BRS?
61. What are all various types of Capital accounts listed in Balance Sheet? On what basis they are mentioned under separate headings?
62. Why all expenses are divided in to Capital and Revenue? When certain revenue expenses are capitalized? What is the accounting treatment for capitalization of revenue expenditure?
63. What is the purpose of Matching Concept? By using this concept what kind of accounting entries are made? How accounting standard on revenue recognition is related to this concept?
64. What are all various types of Intangible Assets? When asset is intangible how we can sell them to others? What are all various incomes can be earned from intangible assets? Why amortization is applied on IA?
65. Why Valuation of Inventory is part of final accounts? What are all various suggestions made by accounting standard 2 on inventory valuation? Why it is very important part in deciding profit of the company?
66. As per companies Act, when one company can become Holding Company of another company? What additional accounting formalities need to be followed for HC? What kinds of takeover rules are made by SEBI for companies buying shares to become HC?
67. Why accounting entries should be made based on Accrual Concept? If this concept is not available how it effect fair view of balance sheet and P&L? What kinds of persons are exempted from this? Why?
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